Trump to exclude some car manufacturers from Canada, Mexico tariffs for a month | Trade war news
One month’s exemption is for cars and trucks that are in accordance with the USMac -and the rules of content.
President Donald Trump will exclude car manufacturers from their punishment of 25 percent of tariffs in Canada and Mexico for a month as long as they are in accordance with the terms of the existing free trade agreement, the White House announced.
The announcement on Wednesday came after Trump spoke with the main executive officials of three large car manufacturers, Ford, GM and Stellantis.
The car shares increased on the news, and General Motors increased by 5.3 percent and Ford by 4.1 percent.
Trump’s printing secretary said on Wednesday that the president was open to hearing about additional exemptions, but Canadian Prime Minister Justin Trudeau is not willing to raise the retail Tariff Canada if Trump leaves any tariff in Canada, Associated Press reported that he had quoted the senior government official who spoke on the condition of anonymous.
Trump’s tariffs represent extreme difficulties for car manufacturers, which produce vehicles in all three countries and often deliver parts over the borders of North America several times as they are installed in systems and finished vehicles.
Prime Minister Ontario Doug Ford earlier told Associated Press that a car -sector in the US -II canada would last about 10 days before they start off the prefabricated lines in the United States -Ui Ontario.
“People will lose their jobs,” he said.
One -month exemption for cars and trucks that are in line with An agreement on the American-Mexico-KanadaThe complex rules of content, as Trump stated, would be a grace for Ford, GM and Stellantis, because they are in accordance with USMCA’s complex rules that require vehicles to have 75 percent of North American content to get an infinite access to the US market.
The rules also require that 40 percent of the content of the passenger car is produced in the US or Canada, based on the list of “basic parts”, including engines, transmission, bodywork and chassis components. The pick-up truck threshold is 45 percent.
Car manufacturers have expressed support for an increase in American investment, but they want safety over tariff policies, as well as the rules on vehicles before making dramatic changes, two industrial sources told the Reuters news agency.
Trump could also eliminate a 10 -pointed tariff on Canadian energy imports, such as raw oil and gasoline, which are in line with the USMac rules of origin, Reuters reported that they cite a source familiar with discussions.
Trade tension
AND Tarife threatening to abolish Canadian new economic recovery And it could start a recession, because the country sends US 75 percent of exports and receives a third of all imports from it.
Trade tensions can already be harmed by now. The new data published on Wednesday showed the slowdown of wage growth, as well as lower wage growth for workers who move jobs, with uncertainty about Trump’s policies probable factor. The dollar hit a quarterly lowest on Wednesday, and the US stock indexes have constantly failed this week. Nasdaq fell 9 percent of February 20th.
Trump also imposed an additional 10 percent duty on Chinese goods.
The exemption would also use some car manufacturers with large brand with large American production prints, including Honda and Toyota, but some competitors who do not adhere to they would have to pay a full 25 percent American tariff.
2 April Trump plans to announce what he calls “reciprocal” tariffs to match tariffs, taxes and subsidies provided by other countries. This could dramatically increase the tariff rates charged globally, retaining the risk of wider tariff.
